Russian Authorities Agree to Allow the Use of Crypto for Cross-Border Settlements – crypto.news
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The Central Bank of Russia and the country’s Ministry of Finance recently agreed on a bill proposing the use of cryptocurrency for cross-border payments. The development appears to be a reversal of the government’s negative approach towards crypto.
Crypto for cross-border payment
According to local media Kommersant On September 22, 2022, Russian Deputy Prime Minister Alexei Moiseyev announced that the Central Bank of Russia agreed to the proposal. A government official said:
“Now we have an invoice agreed with the central bank for this part… It generally describes how cryptocurrency is acquired, what can be done with it and how it can or cannot be paid in general. -border settlements.”
Moiseev, who revealed the development at the XIX International Banking Forum “Banks of Russia – XXI“. Earlier it was reported that the Central Bank of Russia was considering allowing the use of cryptocurrency for cross-border payments. According to Moiseev at the time:
“In the regulation of the cryptocurrency market, the difference in approach has remained. But I can say that the central bank has also reconsidered [the approach], given that the situation has changed and we are reconsidering it. Because the infrastructure we designed is too rigid for the use of cryptocurrencies for cross-border payments, which of course we need to legalize in some way first.
At the same time, the official stated that the purpose of the proposal was to allow Russians to easily access crypto wallets, adding that citizens can open crypto wallets in Russia with the help of institutions under the supervision of the central bank.
“Now people are opening crypto wallets outside the Russian Federation. It is essential that this can be done in Russia, that it is done by entities supervised by the central bank, who must comply with the requirements of anti-money laundering legislation and, above all, of course, know their customers. .”
Russia’s relationship with crypto
While the latest news seems to indicate the government’s positive attitude towards crypto, Russia has been blowing hot and cold regarding the nascent industry. In January 2022, the Central Bank of Russia proposed to ban cryptocurrency trading in the country, stating that digital assets are a threat to the country’s financial system.
The top bank also addressed cryptomining, stating that the activity jeopardizes Russia’s green energy initiative and created “incentives to circumvent regulatory efforts.“
However, Ivan Chebeskov, head of the Finance Ministry’s financial policy department, argued that it is better to provide a robust crypto-regulatory framework rather than proposing a complete ban on digital assets. Former Russian President Dmitry Medvedev also opposed the ban, stating that such a measure could have negative effects.
In April, the Ministry of Finance presented a law proposing the legalization of crypto payments and mining. President Vladimir Putin later signed a new law banning the use of crypto for payments.